The Indianapolis journal. [volume] (Indianapolis [Ind.]) 1867-1904, 1887-04-25
TRANSCONTINENTAL RATES
Official Statement Accompanying an
Order Made by the Interstate Board.
Decision on the Application of the New Eng
land Lines Deferred Until the Commission
Returns from Its Southern Visit.

WASHINGTON, April 23--The following is an
official statement prepared by the Interstate
commerce Commission to accompany its orders
in tho matter Of the transcontinental railroads:
"The commission has made orders. upon the
application of the Southern Pacific, the Northern
Pacific, the Atchison. Topeka d Santa Fe and
the St. Louis q San Francisco railroad COM
panies for relief from the operation of Section
of the act to regulate commerce., permitting the
carriers to establish rates to and from the Pa
cifc coast at less amounts than to and from in
termediate points for period not exceeding
seventy-ive days This result has been reached
upon considerations which are not necessary to
be now stated in detail. but which appear TO
leave no present alternative. 1t Is in evidence
before US that the rates to and from local points
Of some ct the transcontinental lines have been
somewhat reduced since April 5. and also that
the through rates which prevailed prior to April
were the result of war of rates among the
lines, which produced discrepancy between To-
cal and through rates which the carriers agree
was unreasonable, and do not desire 10 return
''The commission is earnestly engaged in con-
siderine the course which it will finally adopt in
reference to Section 4. Many conflicting inter,
ests have indicated desire to be heard, and
should have an opportunity before our final de-
cison is reached. All such persons are invited
to present facts and arguments For the pur-
pose of this matter only, and without authorlz-
ing any general practice of this nature, In order
to obtain the fullest information and afford the
most extended facilities to distant points of the
country the commission will receive af6davits
az to matters of fact, and printed or written ar
guments on matters of fact or of law. which
should be presented without delay. This invi-
tation extends to the general subject of ques-
tioLs arising under Section 4. and is not limited
TO the petitions of the transcontinental roads.
Meanwhile, the attention of the carriers is
directed to tho propriety of devotine the inter-
mediate time to the preparation and adoption
of tariffs which shall attempt to meet, in good
faith, the requirements of the act to regulate
commerce. giving the same fair and reason
able Interpretation in respect to all its various
features.
I'm making these orders the commission does
not finally determine upon their propriety or
justice, but only that pending the investiga-
tons now In progress, it is proper right and just
that the permission provided for be given, in or
der that the general business of the country
shall receive no unnecessary shock or damage.
The orders intended to prevent. as far
may be possible, the occurrence of mischief in
period which, in certain sense, stransitionary,
and which of necessity must involve changes.
the full extent of which cannot at present be
foreseen."
The order, in the case Of each line, recites in
its preamble the circumstances peculiar to the
line to which it applies. The following language
is common to all, and embodies the substance of
the document:
"And it appearing to the commission, after an
investigation OF said petition and the facts pre-
scented in support thereof, to be proper case for
temporary order until the commission can
make a complete examination of the matters al
legged as reasons for relieving the
said common carrier from the operation
of said section of said act, it is ordered that the
said application be, and the same is hereby
granted temporarily. subject to modification or
revocation by the commission at any time, upon
hearing or otherwise; and the said Northern Pa
cihc railroad is hereby temporarily relieved from
the operation of Section of said act to the ex-
tent specified in the recital Of this order, and
for period not greater than seventy five days
from this date. subject. however, to the restric-
tion that, while this order remains in force, said
common carrier shall not charge receive COM
pensation for the transportation of property be-
tween stations on its line where more is charged
for shorter than for a longer haul, which shall
be greater than the rates hitherto In force prior
to the Goth day of April. instant 1t is fur
ther condition Of this order that printed copy
thereof shall be forthwith publicly posted and
kept with the schedule rates and charges at
every station named herein upon the line of said
company for the use of the public"
The commission has also sent a letter to Mr..
Charles P. Clark, president of the New York &
New Haven railroad, in reference to the petit
tons presented by him on behalf of the various
roads OF southern New England for suspension
Of the long-and-short-haul clause 1t says that
the petition was presented at time when trans
continental matters were pressing. and on the
eve of the commissions departure for the South.
In view Of this fact. OF the fact that there does
not appear to be any pressing exigency for a
temporary order for relief, and of the fact that
vigorous protest has been presented against the
granting of the relief, it has been decided to de-
ter consideration of the matter until the return
of the commission from its Southern trip. The
letter further says that the views of
the commission are under process OF
consideration, and that it will not be
very long before they will be formulated.
The protest referred to is from G. c. Goodrich,
agent Of the Hartford & New York Transports
ton COMPANY. the competing water route:
This protest states that il the fourth section of
the law is suspended the railroads will notify
shippers that if they ship by the water lines dur
ing the season of navigation the highest rates
will be charged them when navigation closes.
thus compelling the water lines to join the rail
roads in making such rates as will be profitable,
even though. by dividing up the business. the
steamers go half loaded
In the matter of a petition received from the
Rome Watertown q OCdensburg railroad, the
commission has ordered the temporary suspen
sion of the long short haul clause as regards
passenger traffic between stations where there is
competition with the Grand Trunk. These are
stations between Norwood, on the east, and Cape
Vincent on the west.
The commission has made no orders in respect
to the petitions of the Wisconsin roads.
In tie matter of the Boston export trade in
relation to which petitions were presented by
several Boston roads. an exhaustive opinion
prepared by Judge Cooley, has been rendered
1t sets forth the positions taken by the roads
and the reasons given for the payment of re-
bate upon grain and provisions for export; says
it was not shown by petitioners that the com
mission has any power to grant relief under the
act that it is seldom that the rebate exceeds the
ocean rate, so that except in these rare in
stances, the long-and SHORTHAND clause would
not apply as between grain to Boston and grain
through Boston for export. Therefore, the sus
pension Of that clause would not give the relief
asked. What the companies want is the author
ity to continue to pay rebates. whether less OIL
greater than the ocean rate. The opinion says
that if the rebate causes an unjust discrimina
ton, it would not be legal. nor could it be made
SO by the assent order of the commission. If
on the other hand as claimed, the rate from
the West to Boston is just rate, and The
rate to the some point for export, though less
causes no unjust discrimination, but it is mad,
TO correct an inequality which would at once ex
ist between rates on export grain via Boston anG
via New York, over practically like distances, to
protect the export trade of Boston, then Their,
Is no violation of the law and no occasion to cal
on the commission. The opinion concludes:
whether the freight from interior point
ought to be carried at rates as low as those pre
vailng from the same points to New York. is ,
question not legitimately before the commission
now. The railroad companies who are the onl,
parties asking action at our hands, Justify tn,
differences now made on the ground of longe
haul, while submitting to rebate on expor
trade under species of compulsion If the ex
actions from the Boston traffic proper are ex
cessive, the fact can only be adjudcated whe,
somebody questions them in proceedings insti
tuted for the purpose Of a regular INVESTIGATION
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